Tata Motors to raise Rs 7,200 cr to fund JLR deal

Mumbai, May 28 (UNI) India's largest light and heavy vehicle maker Tata Motors would raise about Rs 7,200 crore through three simultaneous but unlinked Rights Issues to fund its Jaguar-Land Rover deal that is likely to completed in the second half of the current fiscal.

The board of directors has approved to raise the amount mainly for funding finance requirements for the JLR acquisition, through its wholly-owned subsidiary in UK, the Company said today.

After the completion of Rights Issues, the Company also plans to raise about USD 500-600 million through an appropriate issue of securities in the foreign markets.

Tata Motors has reported a slight lower net profit and said that it expects automobile industry would face challenging times ahead, due to sustained increase in input costs amid difficult global economic environment.

For the year ended March 31,2008, it has posted net profit marginally lower at Rs 2,167 crore from Rs 2,169 crore in the previous year, while total revenues grew by 9.3 per cent to Rs 40,340 crore.

The Company has also declared a dividend of 150 per cent, Rs 15 per share.

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